BILL NUMBER: AB 2182	CHAPTERED  09/05/00

	CHAPTER   292
	FILED WITH SECRETARY OF STATE   SEPTEMBER 5, 2000
	APPROVED BY GOVERNOR   SEPTEMBER 1, 2000
	PASSED THE SENATE   AUGUST 18, 2000
	PASSED THE ASSEMBLY   MAY 31, 2000
	AMENDED IN ASSEMBLY   MAY 26, 2000
	AMENDED IN ASSEMBLY   APRIL 25, 2000
	AMENDED IN ASSEMBLY   MARCH 29, 2000

INTRODUCED BY   Assembly Member Mazzoni

                        FEBRUARY 23, 2000

   An act to amend Section 10126 of, to add Section 10780.5 to, and
to add Article 1.3 (commencing with Section 20103.8) to Chapter 1 of
Part 3 of Division 2 of, the Public Contract Code, relating to public
contracts.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 2182, Mazzoni.  Bidding procedures:  alternative bids.
   Existing law establishes procedures for competitive bidding of
certain contracts by public entities, and permits designated state
officials to approve cost estimates that contain additions to or
deletions from the base bid.
   This bill would revise procedures affecting state contracts to
prescribe procedures for determining the lowest bidder if additions
or deletions from the base bid are considered.  The bill would also
authorize local agencies and the Trustees of the California State
University to include alternatives that may be added to or deleted
from the final bid award for a project, and would specify how those
alternatives shall be considered in determining who is the lowest
responsible bidder.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  The Legislature finds and declares all of the
following:
   (a) Because the dollar amount of the lowest bid is not known until
the bids are received and opened on bid day, and because the amount
of money available for public works projects is limited, public
entities need the budgetary flexibility afforded by allowing them to
list items on which bidders must provide bid prices, but which may or
may not be added to, or deleted from, the contract, depending upon
the availability of funds.
   (b) Selective use of additive and deductive bid items to determine
the lowest responsible bidder can violate the public policies
described in subdivisions (c) and (d) of Section 100 of the Public
Contract Code.
   (c) The public policies described in subdivisions (c) and (d) of
Section 100 of the Public Contract Code can be satisfied by a process
in which additive and deductive bid items are selectively used to
determine the lowest monetary bidder after the bids are received, if
no information that would identify any of the bidders is revealed to
the public entity before the lowest monetary bidder is determined.
  SEC. 2.  Section 10126 of the Public Contract Code is amended to
read:
   10126.  Notwithstanding the provisions of Section 10125, the
estimate of cost may be approved by the director, which includes
alternates contemplating additions to, or deletions from, the base
bid, provided that all of the following requirements are met:
   (a) Estimates are made for each contingency and, in the aggregate,
such alternates do not exceed 10 percent of the estimated cost for
the project.
   (b) The available funds are at least sufficient to cover the filed
estimate for the base project.
   (c) Whenever additive or deductive items are included in a bid,
the bid solicitation shall specify which one of the following methods
will be used to determine the lowest bid.  In the absence of such a
specification, only the method provided by paragraph (1) will be
used:
   (1) The lowest bid shall be the lowest bid price on the base
contract without consideration of the prices on the additive or
deductive items.
   (2) The lowest bid shall be the lowest total of the bid prices on
the base contract and those additive or deductive items that were
specifically identified in the bid solicitation as being used for the
purpose of determining the lowest bid price.
   (3) The lowest bid shall be the lowest total of the bid prices on
the base contract and those additive or deductive items taken in
order from a specifically identified list of those items, depending
upon available funds as identified in the solicitation.
   (4) The lowest bid shall be determined in a manner that prevents
any information that would identify any of the bidders from being
revealed to the public entity before the ranking of all bidders from
lowest to highest has been determined.
   (d) The contract is awarded to the lowest bidder, as determined by
the method prescribed in subdivision (c).
   (e) A responsible bidder who submitted the lowest bid as
determined by this section shall be awarded the contract, if it is
awarded.  This section does not preclude the public entity from
adding to or deducting from the contract any of the additive or
deductive items after the lowest responsible bidder has been
determined.
  SEC. 3.  Section 10780.5 is added to the Public Contract Code, to
read:
   10780.5.  The trustees may require a bid for a public works
contract to include prices for items that may be added to, or
deducted from, the scope of work in the contract for which the bid is
being submitted.  Whenever additive or deductive items are included
in a bid, the bid solicitation shall specify which one of the
following methods will be used to determine the lowest bid.  In the
absence of such a specification, only the method provided by
subdivision (a) will be used:
   (a) The lowest bid shall be the lowest bid price on the base
contract without consideration of the prices on the additive or
deductive items.
   (b) The lowest bid shall be the lowest total of the bid prices on
the base contract and those additive or deductive items that were
specifically identified in the bid solicitation as being used for the
purpose of determining the lowest bid price.
   (c) The lowest bid shall be the lowest total of the bid prices on
the base contract and those additive or deductive items taken in
order from a specifically identified list of those items, depending
upon available funds as identified in the solicitation.
   (d) The lowest bid shall be determined in a manner that prevents
any information that would identify any of the bidders from being
revealed to the public entity before the ranking of all bidders from
lowest to highest has been determined.
   A responsible bidder who submitted the lowest bid as determined by
this section shall be awarded the contract, if it is awarded.  This
section does not preclude the trustees from adding to or deducting
from the contract any of the additive or deductive items after the
lowest responsible bidder has been determined.
  SEC. 4.  Article 1.3 (commencing with Section 20103.8) is added to
Chapter 1 of Part 3 of Division 2 of the Public Contract Code, to
read:

      Article 1.3.  Award of Contracts

   20103.8.  A local agency may require a bid for a public works
contract to include prices for items that may be added to, or
deducted from, the scope of work in the contract for which the bid is
being submitted.  Whenever additive or deductive items are included
in a bid, the bid solicitation shall specify which one of the
following methods will be used to determine the lowest bid.  In the
absence of such a specification, only the method provided by
subdivision (a) will be used:
   (a) The lowest bid shall be the lowest bid price on the base
contract without consideration of the prices on the additive or
deductive items.
   (b) The lowest bid shall be the lowest total of the bid prices on
the base contract and those additive or deductive items that were
specifically identified in the bid solicitation as being used for the
purpose of determining the lowest bid price.
   (c) The lowest bid shall be the lowest total of the bid prices on
the base contract and those additive or deductive items taken in
order from a specifically identified list of those items, depending
upon available funds as identified in the solicitation.
   (d) The lowest bid shall be determined in a manner that prevents
any information that would identify any of the bidders from being
revealed to the public entity before the ranking of all bidders from
lowest to highest has been determined.
   A responsible bidder who submitted the lowest bid as determined by
this section shall be awarded the contract, if it is awarded.  This
section does not preclude the local agency from adding to or
deducting from the contract any of the additive or deductive items
after the lowest responsible bidder has been determined.
